LONDON (Reuters) – Weakness in banks and commodity stocks dragged Britain's leading share index lower on Monday as the protracted search for a Greek bond deal and concerns about economic growth kept investors nervous.

The FTSE 100 (.FTSE) index closed down 62.36 points, or 1.1 percent, at 5,671.09, extending Friday's falls and retreating further from Thursday's six-month closing high.

The FTSE volatility index (.VFTSE) was also active, up over 10 percent, its biggest daily percentage rise in a month and signaling an increase in risk aversion.

Banks (.FTNMX8350) were the biggest blue-chip casualties, hit by concerns that extra liquidity injections from central banks had not addressed the sector's fundamental problems.

Credit Suisse reduced its recommendation on the European Banking sector to "underweight" as it said the direct earnings impact of the European Central Bank's (ECB) late-December splurge of cheap, long-term cash for the banks appeared to be over-estimated.

Barclays (BARC.L) was the UK sector's biggest faller, down 4.2 percent, while Lloyds Banking Group (LLOY.L) shed 4.1 percent, and Royal Bank of Scotland (RBS.L) fell 3.5 percent.

EU leaders met in Brussels on Monday, the first summit of 2012, to sign off a permanent rescue fund for the euro zone — Britain's biggest trading partner — though the meeting was overshadowed by the unresolved Greek debt problems.

To avoid a chaotic default, which could have grave ramifications for sentiment and financial systems across the globe, Greece must secure a deal with its private bond holders and persuade international lenders it is serious about reforms in order to secure much-needed cash.

Fresh tensions between Greece and the euro zone's biggest economy Germany over the weekend regarding the debt bail-out terms also knocked sentiment.

"This isn't the first time Greece has shown resistance to accepting certain EU bailout terms and conditions, and given their weak position they may need to concede again, otherwise risk defaulting on the debt repayments due in March," said Jordan Lambert, Trader at Spreadex.

U.S. blue chips (.DJI) were down 0.6 percent by London's close, also suffering on concerns over the Greek debt situation, and after further dull U.S. economic data.

U.S. consumer spending was flat in December as households took advantage of the largest rise in income in nine months to boost their savings, setting the tone for a slowdown in demand early in 2012.

COMMODITIES DIP

Weakness in commodity issues also weighed on blue chips in London, with a retreat in crude knocking the integrated oils (.FTNMX0530) as an expected Iranian vote to suspend crude exports to Europe was postponed, easing supply concerns.

Miners (.FTNMX1770) also moved lower in tandem with weaker metal prices, as softer-than-expected U.S. economic data fuelled concerns about demand levels.

Defensive stocks dominated on the short list of blue chip gainers, led by drugmakers, with AstraZeneca (AZN.L) and GlaxoSmithKline (GSK.L) up 0.6 percent and 0.5 percent.

AstraZeneca will post fourth-quarter results on Thursday.

Utilities were in demand, with energy generator International Power (IPR.L) up 0.6 percent, and power distributor National Grid (NG.L) ahead 0.5 percent. Both firms are due to issue trading updates later this week.

And chip designer ARM Holdings (ARM.L) gained 0.3 percent, with its fourth-quarter results due tomorrow.

(Reporting by Jon Hopkins; Editing by Will Waterman)

LONDON (AFP) – Stocks in London and across Europe fell sharply on opening Friday following big losses in Asia and on Wall Street sparked fears of a fresh financial crisis.

The FTSE 100 index of top shares was down over 3.0 percent — or 191 points — in early trade at a low of 5,202 points before recovering slightly.

Elsewhere France’s Cac 40 index was down nearly 3.0 percent, Germany’s Dax dived 3.5 percent, Milan slumped 3.5 percent and Madrid shed 2.4 percent.

Tokyo earlier closed 3.72 percent lower, Sydney slumped 4.0 percent and Taipei dived 5.58 percent.

Traders are nervously awaiting vital US employment figures for July due at 1230 GMT as they mull whether a so-called double-dip recession is in sight.

LONDON (AFP) – Stocks in London and across Europe slipped on Friday on the increasing prospect of a sharp economic downturn, with attention focused on US jobs data, widely expected to deepen the gloom of flagging growth and eurozone debt.

European stock markets initially fell 3.0-4.0 percent after heavy falls in Asia and on Wall Street as traders nervously awaited vital US employment figures for July due at 1230 GMT.

But losses were less acute by midday, with the FTSE 100 index of top shares down 2.62 percent after initial losses of more than 3.0 percent which had sent it to levels last seen 11 months ago.

Elsewhere, France’s Cac 40 index was down nearly 1.16 percent and Germany’s Dax dived 2.35 percent.

However, Milan eventually rose 0.45 percent after earlier slumping 3.5 percent and Madrid ticked up 0.4 percent after earlier shedding 2.4 percent.

Tokyo closed 3.72 percent lower, Sydney slumped 4.0 percent and Taipei dived 5.58 percent.

Traders are nervously awaiting vital US employment figures for July due at 1230 GMT as they mull whether a so-called double-dip recession is in sight.

LONDON (AFP) – Stocks in London extended their losses on Friday on the increasing prospect of a sharp economic downturn.

The FTSE 100 index of top shares closed down 2.71 percent to 5,246.99 points.

Lloyds Banking Group was the most traded stock of the day with 417 million shares changing hands, followed by Vodafone, which saw 252 million shares switching owners.

Glencore was the best blue-chip performer, rising 4.45 percent — 17.5 pence — to finish at 408.4, followed by British satellite operator Inmarsat, which climbed 2.08 percent — 8.2 pence — to close at 402.7.

BT Group led the fallers, plunging 7.21 percent — 14 pence — to close at 180.3.

It was followed by Weir Group, which was down 6.94 percent — 129 pence — to finish at 1,731.

On the currency markets, a pound was worth 1. 637 dollars at 1553 GMT, down from 1.630 at the same time on Thursday, while it stood at 1.156 euros, down from 1.151 euros over the same period.

LONDON (AFP) – Stocks in London closed sharply down on Wednesday on a set of poor US economic data that suggested weaker activity could extend into the third quarter.

The FTSE 100 index of top shares ended down 2.34 percent at 5,584.51 points.

In the United States, the Institute for Supply Management said its non-manufacturing purchasing managers’ index slipped to 52.7 in July from 53.3 in June.

Forecasters surveyed by Dow Jones Newswires had expected last month’s PMI to be little changed at 53.5 points.

Lloyds Banking Group (LBG) was the most traded stock of the day with 180 million shares changing hands, followed by Vodafone, which saw 149 million shares switching owners.

Silver producer Fresnillo was the best blue-chip performer for the second straight day, rising 5.18 percent — 94 pence — to finish at 1,907, followed by consumer goods packaging firm Rexam, which climbed 4.01 percent — 14.2 pence — to close at 368.

Swiss-based global commodities trader Glencore led the fallers, slipping 7 percent — 32.1 pence — to close at 426.35.

It was followed by oil and gas exploration company Tullow Oil, which was down 5.68 percent — 69 pence — to finish at 1,146.

On the currency markets, a pound was worth 1.640 dollars at 1604 GMT, up from 1.628 at the same time Tuesday, while it stood at 1.1459 euros, up from 1.1453 over the same period.

LONDON (AFP) – Stocks in London closed lower Friday in the wake of official data from the US which showed the world’s largest economy had stagnated in the last six months.

A flood of terrible numbers on gross domestic product (GDP) growth from the Commerce Department initially sent US stocks into a tailspin. The Dow index plunged more than 100 points in early trade but later pared losses.

In London, the FTSE 100 index of top shares was down 0.99 percent at 5,815.19 points.

Lloyds was the most traded stock of the day with 256 million shares changing hands, followed by the Lloyds Banking Group (LBG), which saw 150 million shares switching owners.

Vodafone was the best blue-chip performer, rising 3.99 percent — 6.6 pence — to finish at 172, followed by education and publishing group Pearson, which rose 3.07 percent — 35 pence — to close at 1,174.

LBG led the fallers, slipping 3.67 percent — 1.65 pence — to close at 43.35, followed by diversified miner Anglo American, which was down 3.27 percent — 98 pence — to finish at 2,900.

On the currency markets, a pound was worth 1.645 dollars at 1605 GMT, down from 1.633 at the same time Thursday, while the euro stood at 1.143, up from 1.142 over the same period..

LONDON (AFP) – London stock markets closed lower at the end of trade on Monday on fears of a US debt default.

The FTSE 100 index of top shares was down 0.16 percent at 5,925.26.

Lloyds was the most traded stock of the day with 144 million shares changing hands, followed by the Royal Bank of Scotland (RBS), which saw 81 million shares switch owners.

Miner Fresnillo was the best blue-chip performer, rising 2.86 percent (49 pence) to finish at 1729. It was followed by Weir group, which rose 2.55 percent (55 pence) to close at 2210.

Barclays led the losers, slipping 4.44 percent (10.65 pence) to close at 228.9. It was followed by Lloyds, which was down 4.30 percent (2.03 pence) to finish at 45.10.

On the currency markets, a pound was worth 1.628 dollars and 1.1344 euros at 1654 GMT.

LONDON (AFP) – London shares fell on Thursday as investors awaited an emergency eurozone summit set to discuss a new bailout deal for Greece amid a spreading eurozone debt crisis.

The FTSE 100 index of top shares dropped 0.87 percent to 5,803.11 points in late morning deals.

Elsewhere in Europe Frankfurt’s DAX 30 declined 0.90 percent to 7,156.17 points while in Paris the CAC 40 index shed 0.96 percent to 3,718.41.

The Stoxx 50 index of leading eurozone companies decreased by 0.66 percent to 2,688.00 points.

“The last two days have seen a small rise in equities as traders wagered on EU finance ministers taking one step towards solving their sovereign debt issues,” said Manoj Ladwa, senior trader at ETX Capital.

“But this mini-rally seems to have run out of steam this morning as traders move to the sidelines ahead of any announcement,” he added.

Eurozone leaders entered a critical summit on Thursday eyeing a deal to reduce Greece’s debt mountain, but without excluding a default to save the euro from its worst crisis.

A draft agreement was put on the table for the 17 leaders following an 11th hour deal reached between the eurozone’s two powerbrokers, German Chancellor Angela Merkel and French President Nicolas Sarkozy, a European diplomat said.

The leaders dropped the idea of a special tax on banks to help fund a second Greek bailout, the diplomat added.

The draft opens the door to German calls for private sector involvement in the bailout, even at the risk of triggering a default.

Tokyo’s benchmark Nikkei stock average finished flat on Thursday, after a day of cautious, thin trade with a strong yen hurting sentiment ahead of the key summit to address Greece’s debt woes, traders said.

US stocks fell slightly on Wednesday as investors waited for a resolution to the debt-ceiling standoff in Washington and digested a mixed bag of second-quarter earnings reports.

Traders were also closely watching developments in Washington, where US President Barack Obama was set to meet with opposition Republican leaders to seek a compromise solution to the debt-ceiling battle.

The White House has warned that failure to raise the debt limit by August 2 could lead to a US government default, which Obama has characterized as economic “Armageddon”.

LONDON (AFP) – London stocks firmed at the start of trading on Friday in the wake of a eurozone debt deal, with the benchmark FTSE 100 index up 0.49 percent to 5,928.64 points.

Share prices had already closed sharply higher on Thursday as news of the eurozone debt deal offered the hope of finally taming a crisis which has roiled markets for months.

Eurozone leaders and private creditors agreed to give Greece a new 159-billion-euro (140-billion-pound) bailout, risking a potential default to prevent the debt crisis from spreading worldwide.

LONDON (AFP) – London shares rose at the start of trading on Thursday, as investors awaited an emergency eurozone summit on a new bailout for Greece amid a spreading eurozone debt crisis.

The benchmark FTSE 100 index climbed 0.23 percent to 5,867.35 points in early deals.

Elsewhere in Europe Frankfurt’s DAX 30 advanced 0.60 percent to 7,264.98 points while in Paris the CAC 40 gained 0.41 percent to 3,769.86.

Ahead of the summit’s start, German Chancellor Angela Merkel and French President Nicolas Sarkozy, the eurozone’s key players, agreed on a “common position” after late-night talks in Berlin.

The French government said the agreement was a precondition to ending the eurozone debt crisis.

“It was an indispensable precondition to reassure our partners,” government spokeswoman Valerie Pecresse told France 2 television.

“We must build the widest possible consensus and the first building block of that consensus, is obviously a common position” between France and Germany, she added.